Carrollton, Texas, July 08, 2022 (GLOBE NEWSWIRE) -- Allied Energy Corp (OTC Pink: AGYP), a producing oil and gas company focused on the leasing and reworking of oil and gas reserves in one of the most prolific hydrocarbon area in the United States, is pleased to announce that the Company has recently expanded its natural gas holdings through the acquisition of the Thiel Lease and Well.
The Thiel Well was drilled by Union Pacific Resources in 1996 and is located near Brenham Texas. The Thiel Well was drilled as a dual lateral well and, when completed, reported an absolute open flow rate of 44,000,000 cubic feet of natural gas per day. During its first 3 years of operation, the Thiel Well produced approximately 3,000,000,000 cubic feet of natural gas to date.
Most recently the Thiel Well was operated by Jenex Petroleum Corporation from 2009 to 2021. During this time the Thiel Well reported numbers of approximately 8,080,000 cubic feet of natural gas per day (or 8.80 mmcfpd)
Currently, the Thiel Well is shut in due to a leak in the flowline and the former operator's unwillingness to repair due to potential high costs. Allied's team has carefully performed due diligence on the Thiel Well and the repairs necessary to return to production. Allied has surmised that the Thiel adds significant value to the corporate holdings and serves to expand Allied's increasing interests in natural gas resources.
Allied CEO George Montieth commented on the acquisition: "One of the natural resources that we haven't spoken much about, thus far, is our natural gas holdings. Based on current trends and the preponderance of news, we here at Allied believe that natural gas, along with crude oil, has an incredibly bright future and we want to inform our investing public that we intend to maximize this resource alongside our crude oil production. Allied is seeking additional capital to add more leases like the Thiel."
Natural gas is commonplace in many oil wells and often becomes "flare gas." For those that have seen oil fields at night and have noticed what appear to be bright flames, that is the flare off gas (natural gas) being expelled into the atmosphere. Lighting the flare gas is simply the easiest way to handle this natural resource that accompanies oil production and to reduce well pressure to safe levels. However, this is an environmentally unfriendly way to handle flare gas and a waste of a resource that is exponentially growing in demand.
Recently, the price of natural gas has risen sharply. The United States is currently the number one producer of natural gas in the world, but Russia is a close second. Based on the World Mining Data in 2021, the production of natural gas from Russia achieved 717,960 million meters cubic. Many of the countries around the world have begun to reject natural gas resources from Russia due to Russia's actions against Ukraine. This fact, in part, has caused natural gas demand to skyrocket across the world.
Recent news conclusively highlights this reality: "Since Moscow invaded Ukraine on Feb. 24, U.S. gas prices have soared about 50% as European countries look to the United States, the world's second biggest exporter, to sell more liquified natural gas (LNG) to wean Europe off Russian fuel." (from: https://www.msn.com/en-us/money/markets/us-natural-gas-production-growth-wanes-as-need-arises/ar-AAWOqVu)
Another news source stated that "Demand for natural gas has never been higher" (see: https://finance.yahoo.com/news/demand-u-natural-gas-never-110000696.html).
Allied CEO George Montieth concluded: "We continue to either produce oil and/or make progress toward greater production on our Green, Gilmer, and Prometheus Leases. I am leveraging relationships that I've built over time to maximize the value added to Allied's holdings. I believe the Thiel Lease acquisition is the beginning of the next chapter of Allied and there will be more to follow."
The Company invites any and all interested parties to check back regularly at https://alliedengycorp.com/ and the corporate Twitter account https://twitter.com/AlliedEnergyCo1
About AGYP: Allied Energy Corp. is an energy development and production company acquiring oil & gas reserves in some of the most prolific hydrocarbon bearing regions of the United States. The Company specializes in the business of reworking & re-completing 'existing' oil & gas wells located in the thousands of mature oil & gas producing fields across the United States. The Company applies its knowledge, experience, and effective well-remediation technologies to achieve higher production volumes, longer well life, and more efficient recovery of the proven and available oil and gas reserves in the fields/projects in which it has acquired an ownership interest. The Company will utilize updated technologies such as hydraulic fracturing ("fracking"), drilling of lateral ("horizontal") legs in productive zones, and utilizing new cased hole electric logging to locate bypassed pays, all to enhance daily rates and oil & gas recoveries. By acquiring interests in a growing number of selected projects in various regions, Allied Energy Corp. is diversifying its exposure and effectively minimizing risk as it pursues corporate growth, top line & bottom-line revenues to the benefit of all stakeholders. There are proven, recoverable reserves contained in the many aging oil & gas fields that have been bypassed by companies moving away from these fields in search of deeper, more plentiful, but more costly reserves. The Company plans to concentrate on bypassed oil and gas as there is less competition and, as mentioned above, the costs are considerably less. Additionally, the company will acquire interests in marginal wells that can be acquired at minimal cost, of which there are 420,000 wells in the U.S. Quoting Barry Russell, President of the Independent Petroleum Association of America ("IPAA") - "With approximately 20 percent of American oil production and 10 percent of American natural gas production coming from marginal wells, they are America's true strategic petroleum reserve.”
Safe Harbor Statement: This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release, including such forward-looking statements.
Contact: Allied Energy Corporation
Phone: 972-632-2393
Email: info@alliedengycorp.com
Twitter: https://twitter.com/AlliedEnergyCo1
